Has anyone done that and produced a fully open source app to connect to whatsapp?
Lots of people.
https://github.com/tgalal/yowsup for example
Looks like WhatsApp isn't so happy about that ...
https://gigaom.com/2015/01/20/whatsapp-cracks-down-on-people...
Do you know if the clients work with the new encryption?
> Without open-sourcing the crypto, they could be just doing rot16($message) for all we know.
There are two things you can do:
1. Watch the outbound traffic and attempt known-plaintext attacks
2. Reverse engineer the app
Neither is particularly difficult. Most Android apps are trivial to break apart using Lobotomy. A large swath of software security folks specialize in binary auditing.